The expanded accounting equation builds upon the basic accounting equation's use of assets, liabilities and equity by incorporating additional components such as revenues, expenses and withdrawals.

Brian Beers is a digital editor, writer, Emmy-nominated producer, and content expert with 15+ years of experience writing about corporate finance & accounting, fundamental analysis, and investing.

When you own a business, you need to understand how much money you make compared to how much you spend. That means you need to grasp profit margins. But while it’s crucial to know how to calculate ...

Daniel Jassy, CFA, is an Investopedia Academy instructor and the founder of SPYderCRusher Research. He contributes to Excel and Algorithmic Trading. David Kindness is a Certified Public Accountant ...

Our teacher already knows there is a positive relationship between how much time was spent on an essay and the grade the essay gets, but we’re going to need some data to demonstrate this properly.